On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and recorded a modest gain. The benchmark index rose 0.2% to 7,341.4 points.
Will the market be able to build on this on Friday? Here are five things to watch:
ASX 200 expected to sink
The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.6% lower this morning. This follows a poor night on Wall Street which saw the Dow Jones fall 0.75%, the S&P 500 drop 0.85%, and the Nasdaq tumble 0.7% lower. Global economic recovery concerns weighed on investor sentiment.
Oil prices rebound
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid finish to the week after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$73.14 a barrel and the Brent crude oil price is up 1.2% to US$74.32 a barrel. Traders were bidding oil prices higher after positive US inventory data.
Iron ore price falls
Miners with iron ore exposure such as BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could come under pressure today after the price of the steel-making ingredient softened. According to Metal Bulletin, the spot iron ore price fell almost 2% to US$218.04 a tonne.
Netwealth given neutral rating
The Netwealth Group Ltd (ASX: NWL) share price could be fully valued according to analysts at Goldman Sachs. This morning the broker responded to the investment platform provider's fourth quarter update by retaining its neutral rating but lifting its price target to $16.33. Goldman was pleased with its solid end to the year but remains neutral on valuation grounds. The Netwealth share price is currently trading at $16.30.
Gold price rises
Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,803 an ounce. Traders were buying the precious metal amid concerns over the US recovery from COVID-19.
